Tag Archives: decile

Decile analysis is a popular segmentation tool. Where a pareto analysis splits the top 20% customers (or products, regions, etc.) from the bottom 80%, decile analysis divides them into equally sized groups of 10%.

The image below shows an example of a decile analysis.

The example shows how a group of 1.000 customers is divided into deciles of 100 customers. Lots of interesting things can be learned from this analysis, amongst other things:

Your top 10% customers are generating profit that is significantly above average;

Your top 30% customers are responsible for 80% of your profit;

You are losing money on your bottom 20% customers (the so-called “bleeders”).